3/4 UK Graduates Will Never Repay Student Loans

With tuition costs rising more than twice as quickly as consumer prices, a generation of recent college graduates are struggling to strike out on their own, burdened by a $1.4 trillion pile of debt that ineligible to be erased by the tonic of bankruptcy protection. Tuition costs have been blamed for nearly all of the ills facing the millennial generation. The rate at which recent graduates are moving back homme with mom and dad has never been higher, with nearly a third retreating back to the basement as they struggle to jobs with adequate pay. Household formation rate have plummeted as women put of childbirth. Meanwhile, those who have made it out are clustering in popular urba like NYC, San Francisco or DC where they’re spending more than 50% of their income on rent.
There’s no question that US graduates have it rough, but a recent study by the UK-based Institute for Fiscal Studies suggests that students in the UK are facing obstacles that’re even more overwhelming than their peers in the US. As the Financial Times reported earlier this month, Three-quarters of UK university leavers will never pay off their student loans, even if they are still contributing in their 50s.
This means the UK government will have to write off some or all of the debt taken out by 77% of students because they will not earn enough to repay their loans within 30 years of graduating, according to the study, which was written up in the Financial Times.

This post was published at Zero Hedge on Jul 18, 2017.